CNBC/Stephanie Landsman
The market is at a crossroads with surging coronavirus cases and the election looming, Ally Invest strategist says

Coronavirus“One of Wall Street’s top strategists is reining in her summer rally forecast.

Ally Invest’s Lindsey Bell cites the spike in coronavirus cases across the country as the main catalyst behind her decision.

“In the last couple of weeks, especially the last seven days, you’ve see a significant jump in virus cases,” the firm’s chief investment strategist told CNBC’s “Trading Nation” on Thursday. “You’re also starting to hear about a slowing and a reversal of reopening plans we didn’t have before Monday.”

Besides places such as California shuttering its gyms, salons and restaurants again due to the virus spike, Bell is concerned about underlying market signals. She lists the 10-year Treasury Note yield’s trouble getting above 1%, gold recently trading above $1,800 an ounce and elevated volatility levels as troublesome factors.

“Those are things that are making me become more vigilant,” she said.

Bell, a CNBC contributor, believes the setback could upset the economic rebound and create a sideways market embedded by headline-driven volatility.”

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Yahoo Finance/Max Zahn & Andy Serwer
Jump into stock market expecting rise ‘a fool’s errand’: Billionaire investor David Rubenstein

David Rubenstein“The major stock indexes continued their rise on Wednesday, buoyed by a key milestone in the development of a coronavirus vaccine despite an ongoing spike in cases across most U.S. states.

But the good days for the stock market won’t last, says David Rubenstein, a billionaire investor and co-founder of private equity giant Carlyle Group. He warned against bullish near-term market expectations, citing a disconnect between rising equity prices and a sluggish economy.

“It’s a fool’s errand to go into the market now thinking that it’s a bottom and you’re going to go up from here,” Rubenstein told Yahoo Finance on Tuesday. “I think there’s going to be a lot of ups and downs.”

“The stock market is a forward indicator,” he said. “It’s indicating maybe a year from now that some of these numbers will be justified. But right now, I do think that there is going to be a lot of gyrations between now and a year from now.””

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Kitco/Anna Golubova
Gold to push above $3K in 3-5 years: Fiat currency is a key bubble — hedge fund

Gold bar computerGold prices could nearly double in just three to five years, according to one hedge fund manager, who sees gold as an anti-bubble in an environment fraught with asset bubbles and runaway inflation.

Ultra-accommodative monetary policies and unlimited money printing will catch up with the markets and gold will rise above $3,000 an ounce in the next three to five years, Diego Parrilla, who heads the $450 million Quadriga Igneo fund, told Bloomberg this week.

Parrilla’s fund, which has delivered a 47% return this year, is made up of cross-asset hedges.

“What you’re going to see in the next decade is this desperate effort, which is already very obvious, where banks and government just print money and borrow, and bail everyone out, whatever it takes, just to prevent the entire system from collapsing,” Parrilla told Bloomberg. “The bubbles are too big to fail and mommy and daddy will do whatever it takes to prevent this.”

The fund manager said that inflation will be a major problem in the next decade. He noted that fiat currencies are bound to lose their value in light of the massive money printing needed to sustain stimulus packages around the globe.”

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CNN Business/Julia Horowitz
The world loves the US dollar. Trump and the pandemic could change that

US Dollar“When the novel coronavirus sent investors running for the exits in March, there was a mad dash to snap up US dollars, the world’s ultimate safe haven asset.

But as the United States struggles with fresh Covid-19 outbreaks weighing on the economic recovery, the dollar has stumbled.

Now, some on Wall Street warn it could fall further, due in part to President Donald Trump’s handling of the crisis and isolationist policies.

“We expect the US dollar to follow a path of reduced dominance and weaken over the long term,” Nomura said Monday in a report to clients.”

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